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Bolivia: An Overview


Bolivia is a landlocked South American nation of 11.7
million people (see Figure 1). From2006 to 2018, Bolivia
became  more stable and prosperous under President Evo
Morales, its firs t indigenous president. Bolivia als o
experienced backsliding in measurements of g overnance. In
November  2019, Morales resigned after an election marred
by irregularities and sustained protests. Luis Arce,
Morales's former finance minister, took office a year later,
after winning 55% of the vote in October 2020 elections in
which his Movement  Toward Socialism(MAS)  also
maintained a legislative majority. President Arce faces
many  challenges, including how to address the Coronavirus
Disease 2019 (COVID-19)  pandemic and how to manage
relations with the United States.

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Chronic instability, poverty, corruption, and deep ethnic
and regionalcleavages have stymied Bolivia's
development. Bolivia won independence fromSpain in
1825, experiencing frequent military coups and periods of
authoritarian rule for much of its history. The country
reestablished democratic civilian rule in 1982.

Bolivia's population is among the most ethnically diverse in
South America. In the 2012 census, some 41% of the
population self-identified as indigenous (Quechua or
Aymara). The rest ofthe population is ofEuropean, mixed
European  and indigenous, or African descent. Bolivian
indigenous peoples benefitted fromthe National Revolution
of 1952, which led to land reformand expanded suffrage.
Nevertheless, they remained underrepresented in the
political systempriorto Morales's government and
disproportionally affected by poverty and inequality.

Cultivation of the cocaleafremains a contentious issuein
Bolivia and in Bolivian-U.S. relations. Many ofBolivia's
indigenous communities consider the coca leaf s acred and
use it for traditional, licit purposes (the leaf also is used to
make cocaine). Opposition to years of U.S.-backed forced
coca eradication policies led to th eris e of coca growers'
trade unions and arelated politicalparty, the Movement
Toward  Socialism(MAS). In 2005, years of protest against
leaders perceived to have governed on behalf of the elite led
to the election of Morales, president of the coca growers'
union and a self-identified person of Aymara descent.

Ptiti  c  al C \.ndii \.ae\
Morales and the MAS  transformed Bolivia. Morales
decriminalized coca cultivation outside of traditional zones
where it had been legal, increased state control over the
economy,usednatural  gas revenue to expand social
programs, and enacted anew constitution (2009) favoring
the rights and autonomy of indigenous peoples. Previously
underrepresented groups increased their representation at all


levels of government. In foreign policy, Morales aligned
Bolivia with Hugo Chdvez of Venezuela in taking a hostile
stance toward the United States. In 2008, he expelled the
U.S. Ambas s ador for allegedly fomenting opposition to his
government, charges the State Department dismis sed as
false.


Figure I. Bolivia at a Glance

  Population 1 mioen
  (2019, 1M F est.)
  Area: 42464 square mites, almost
  p     es   nthe s of
  GDP/ GDP per captae


  Populat~on, below the
  poverty hne: 372% (201, NE


  Key trading partners tnt a isae:Baui
  Argeoruna (13.2), Chia (l3.O%0 2019, TDM
  Top exports: in  g  n eto     m,    god (18, TM   I

Sources: CRS Graphics, International Monetary Fund (IMF), Central
Intelligence Agency (CIA), Instituto Nacional de Estadisticas (INE),
Trade Data Monitor (TDM).
Under Morales, Bolivia ranked partly free in Freedom
House's annualFreedom  in the Worldreports, scoring
lowest on is sues related to due process andjudicial
independence. The government launched judicial
proceedings against opposition politicians, dismis sed
hundreds ofjudges, and restricted freedomof the pres s.
Concerns increased after the Constitutional Tribunal ended
cons titutionallimits on reelection in 2017, essentially
overruling a 2016 referendumin which voters rejected
allowing Morales to run for a fourth term. In November
2019, Morales resigned and went into exile amid
nationwide protests against a disputed October first-round
election in which he had claimed victory.

Many  Bolivians criticized the authoritarianismof the
interim government that took overafterMorales's
resignation. Led by Jeanette Aez, formerly a conservative
senator, the interimgovernment rolled backMAS policies,
used violence against protesters, and prosecuted former
MAS   officials. Afezsuspendedcommunity-based coca
control and adopted a drug policy aimed at achieving a
drug free Bolivia. The interim government also struggled
to address COVID-19, and a corruption scandalprompted
the health minister to resign.


The October2020  elections proved to be areferendumon
the legacy of Morales andtheMAS. In contrast to the chaos
of the 2019 elections, the new Supreme Electoral Tribunal
administered a process that international election observers


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Updated November  24,2020

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